Wednesday, April 10

Neither Tesla nor Volkswagen are saved: the closure of Shanghai causes chaos in the production of electric cars in China


Neither Tesla nor Volkswagen are saved: the closure of Shanghai causes chaos in the production of electric cars in China

China’s Covid zero strategy is already being noticed in the auto industry. Manufacturers such as Tesla, Volkswagen or NIO they have their Shanghai factories paralyzed due to the strict confinement of the city. Not directly because they have decided to close the factory, but because many of their suppliers have stopped and the necessary materials are not arriving.

At the moment the Shanghai authorities have not said when they plan to change the confinement and it has already been more than two weeks. A Situation much worse than Tesla anticipatedwhich planned to close only for four days.


There will be delays and the scope is not yet known

The closure of Shanghai is reminiscent of the worst phases of the pandemic. Volkswagen factories in Shanghai and Changchun have been closed for weeks, has confirmed the German manufacturer. “Due to the current situation, our production in Changchun (since mid-March) and Shanghai (since April 1) is suspended,” Volkswagen explains to CNN, while reporting that “this is already causing production delays. “. Volkswagen produces models such as the ID.3 and ID.4 for the Chinese market at these factories.

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To try to compensate for the closure of these factories, companies are taking extra shifts and increasing production at the sites that remain open, but these are patchwork. Not only Shanghai is being affected, but also the Toyota factory in Changchun.

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In the case of Tesla, the company has the production of its gigafactory in Shanghai paralyzed since March 28as reported by Reuters.

“There will be delays in deliveries,” NIO reports in a statement. The Chinese electric car manufacturer has also been affected and has suspended production. At the moment it is not yet known how long this stoppage will last. The particularity is that the NIO offices are in Shanghai, but not its factory (which is in Hefei). Even so, due to not being able to access a large part of the suppliersthe company has had to suspend production.

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Production by companies like Tesla in China was setting records just before the strict lockdown. Tesla managed to deliver 65,000 vehicles in March from its Shanghai factory. Double what a year ago. We will have to see how the month of April turns out, predictably very different due to these closures that are deeply affecting production.

The Chinese automobile industry is experiencing moments of tension. The Beijing Auto Show was to be held between April 21 and 30, but has been delayed until further notice due to the increase in Covid cases.

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Neither Tesla nor Volkswagen are saved: the closure of Shanghai causes chaos in the production of electric cars in China

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by Enrique Perez.

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